Data show that organizations accumulate large amounts of bitcoin in the range of B 12,000–15,000, and according to WhaleMap analysts, this is a positive trend because organizations and Whales generally accumulate wealth with long-term investment strategies in mind.
The fact that BTC is accumulating big hands instead of retail investors also explains the somewhat downtrodden mainstream interest in Bitcoin, as Sectelgraph noted earlier.. Various metrics, including Google Trends, have shown a lack of mainstream demand for BTC, despite its parabolic rally in recent months.
The institutional “FOMO” makes the current BTC rally stronger than the previous cycles
Whalemap analysts have described the recent increase in demand for bitcoin from whales as “institutional FOMO”.
FOMO shows a short trend for “fear of losing” in which investors increasingly buy assets that they fear will continue to rise. Analysts refer to charts showing flows in whale clusters and whale lets. Said:
“These are layers and these look like organizational foams.”
Whale clusters emerge when whale addresses – addresses with more than 10,000 BTC – buy bitcoin and no longer move it.
This shows that Whales plans to buy their latest BTC and keep it in their personal wallets. Wheelmap analysts said:
“Bubbles prices indicate that Whale is currently buying BTC.”
The aggressive accumulation of bitcoin from whales is based on two possible key trends that have been present in the cryptocurrency market since October.
First, there has been a sharp decline in short-term liquidity during the recent rally. In the previous year, when BTC broke out, more than 100 million exchan contracts were liquidated on major exchanges. This shows that the rally was not a short squeeze but a phase of actual accumulation.
Second, the spot market is not the lattice but is ahead in the derivatives market. While the price of BTC was rising, the funding rate of BTC was barely above 0.01% on average.
The low fund rate shows that the futures market majority has not lasted long, indicating that demand has come from elsewhere.
This bull market will be more stable than 2017
On top of the intense involvement of whales and organizations, the recent boom has led to a significant increase in overall trade volume.
Data on an on-chain market analysis firm called Sentiment also shows that the volume of Bitcoin is about 31 31 billion and this is much higher than January 6, 2018. At the time, the price of BTC was also around Rs 16,350.
Sentiment analysts have found that the ongoing rally is higher than the previous rally in 2017. Analysts Wrote:
“With Bitcoin hitting 16,350 an hour ago on SickNabsPro, we are now at the highest price level in 34 months (January 6, 2018). The average daily trading volume this week is $ 31.0 b. $ 18.5b. “
Bitcoin has a roadblock pending in the near term over whether whales will sell at the ના 17,000 resistance, Quintegragraph noted. Some analysts say there is no clear resistance to the 18,500–20,000 range, which means that the all-time high could be much closer than expected.
